ACQUISITIONS AND DISPOSITIONS

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS 

Centerspace acquired $94.5 million and $211.9 million of new real estate during the years ended December 31, 2023 and 2022, respectively. The Company’s acquisitions during the years ended December 31, 2023 and 2022 are detailed below.

Year Ended December 31, 2023

	Date Acquired	(in thousands)
		Total Acquisition Cost(1)		Form of Consideration						Investment Allocation
Acquisitions				Cash		Units(2)		Other(3)		Land		Building		Intangible Assets(4)		Other(5)
303 homes - Lake Vista Apartment Homes - Loveland, CO	October 11, 2023	$	94,500	$	41,777	$	—	$	52,723	$	6,618	$	80,737	$	3,221	$	3,924
Total Acquisitions		$	94,500	$	41,777	$	—	$	52,723	$	6,618	$	80,737	$	3,221	$	3,924

(1)Excludes $405,000 in capitalized transaction cost.

(2)Fair value of operating partnership units issued on acquisition.

(3)Assumption of seller's debt upon closing.

(4)Intangible assets consist of in-place leases valued at the time of acquisition.

(5)Debt premium on assumed mortgage.

Year Ended December 31, 2022

	Date Acquired	(in thousands)
		Total Acquisition Cost(1)		Form of Consideration						Investment Allocation
Acquisitions				Cash		Units(2)		Other(3)		Land		Building		Intangible Assets(4)		Other(5)
191 homes - Martin Blu - Minneapolis, MN	January 4, 2022	$	49,825	$	3,031	$	18,885	$	27,909	$	3,547	$	45,212	$	1,813	$	(747)
31 homes - Elements - Minneapolis, MN	January 4, 2022	9,066		1,290		1,748		6,028		941		7,853		335		(63)
45 homes - Zest - Minneapolis, MN	January 4, 2022	11,364		1,429		2,249		7,686		936		10,261		574		(407)
130 homes - Noko Apartments - Minneapolis, MN	January 26, 2022	46,619		3,343		—		43,276		1,915		42,754		1,950		—
215 homes - Lyra Apartments - Centennial, CO	September 30, 2022	95,000		95,000		—		—		6,473		86,149		2,378		—
Total Acquisitions		$	211,874	$	104,093	$	22,882	$	84,899	$	13,812	$	192,229	$	7,050	$	(1,217)

(1)Excludes $573,000 in capitalized transaction cost.

(2)Fair value of operating partnership units issued on acquisition.

(3)Assumption of seller's debt upon closing for Martin Blu, Zest, and Elements. Mezzanine and construction loans, financed by Centerspace, exchanged as partial consideration for the acquisition of Noko Apartments.

(4)Intangible assets consist of in-place leases valued at the time of acquisition.

(5)Debt discount on assumed mortgage.

DISPOSITIONS 

During the year ended December 31, 2023, Centerspace disposed of 13 apartment communities and associated commercial space in five transactions for an aggregate sales price of $226.8 million. Centerspace did not dispose of any real estate during the year ended December 31, 2022. The dispositions for the year ended December 31, 2023 are detailed below.

Year Ended December 31, 2023

		(in thousands)
	Date			Book Value
Dispositions	Disposed	Sales Price		and Sale Cost		Gain/(Loss)
Multifamily
115 homes - Boulder Court - Eagan, MN	March 8, 2023	$	14,605	$	4,971	$	9,634
498 homes - 2 Nebraska apartment communities	March 14, 2023	48,500		15,025		33,475
892 homes - 5 Minnesota apartment communities	March 15, 2023	74,500		55,186		19,314
62 homes - Portage - Minneapolis, MN	March 15, 2023	6,650		9,098		(2,448)
712 homes - 4 North Dakota apartment communities	September 14, 2023	82,500		71,235		11,265
Total Dispositions		$	226,755	$	155,515	$	71,240